Leases

9 Months Ended

Nov. 30, 2022

Leases [Abstract]

LEASES

NOTE 11 – LEASES

Our administrative, and production operations including warehousing, are housed in an approximately 18,000 square foot facility in Lake Forest, California. The Lake Forest lease is for 66-months effective February 2021 through November 30, 2026. The initial monthly base rental rate was approximately $22,000 per month and escalates 3% each year to approximately $26,000 per month in 2026. The lease liability was determined by discounting the future lease payments under the lease terms using a 10% per annum discount rate to arrive at the current lease liability.

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

The components of lease expense and supplemental cash flow information related to leases for the period are as follows:

	Nine-Months ended November 30, 2022			Nine-Months ended November 30, 2021
Lease Cost
Operating lease cost (included in general and administration in the Company’s statement of operations)	$	209,145		$	209,145
Other Information
Cash paid for amounts included in the measurement of lease liabilities	$	205,632		$	155,281
Weighted average remaining lease term – operating leases (in years)		3.75			4.75
Average discount rate – operating leases		10.0	%		10.0	%

The supplemental balance sheet information related to leases for the period is as follows:

	At November 30, 2022
Operating leases
Long-term right-of-use assets	$	864,359
Short-term operating lease liabilities	$	199,910
Long-term operating lease liabilities		714,429
Total operating lease liabilities	$	914,339

Maturities of the Company’s lease liability is as follows:

	Operating Lease
Years Ending February 28:
2023 (3 months remaining)	$	68,544
2024		282,396
2025		290,868
2026		299,604
2027		154,296
Total lease payments		1,095,708
Less: Imputed interest/present value discount		(181,369	)
Present value of lease liabilities	$	914,339